Lovable valued at $6.6B as edtech funding collapses to under $3B

CNBC reported the round on 16 December, citing two people with knowledge of the deal who asked to remain anonymous while discussing private information. The sources said U.S. venture firm Accel participated, and one of them added that Khosla Ventures is also in. Neither detail had been reported before. Lovable, Accel and Khosla Ventures did not respond to CNBC's request for comment before publication.

It is Lovable's third raise of 2025.

The company was founded in 2023 and reported $200 million in annual recurring revenue in November, according to CNBC. That came just under a year after it first hit $1 million in ARR. Its July round brought in $200 million from investors including Accel, Creandum, Klarna founder Sebastian Siemiatkowski, ElevenLabs founder Mati Staniszewski and Synthesia founder Victor Riparbelli. Forbes had reported in November that the new round would value Lovable at "around" $6 billion, CNBC notes, so the final number landed above that mark. The company is based in Stockholm and is opening offices in Boston and San Francisco. Its platform uses models from providers such as OpenAI and Anthropic to let users build apps and websites from text prompts. When it announced the November ARR figures, Lovable said 100,000 projects were being built on the platform every day.

Comparable rounds elsewhere in the sector have been larger. Anysphere, which makes the coding tool Cursor, raised $2.3 billion at a $29.3 billion valuation in November, according to CNBC. Replit picked up $250 million at a $3 billion price tag in September, and Vercel closed a $300 million round at a $9.3 billion valuation.

Edtech goes the other way

The contrast with education technology is stark. Rest of World reported on 23 April 2026 that global edtech investment peaked at $16.7 billion in 2021, then fell to less than $3 billion by 2025, according to Tracxn, a Bengaluru-based platform that tracks startup funding. Tracxn's data shows most of that money comes from U.S. venture firms. The number of new companies has collapsed too: 645 launched in 2025 against almost 10,500 in 2020.

HolonIQ, a research firm that advises governments and investors on education, wrote in a 6 February post looking back at 2025 that "venture capital flows reflected a shift from volume to intention" and that investors concentrated capital in AI-enabled products, workforce-aligned platforms and K-12 operations tools addressing cost and staffing pressures.

"Corporate workforce development, professional certification prep, and specialized skill acquisition for high-income careers are more promising than K-12 general education," concluded an analysis by Loot Drop, a database of more than 1,700 startup closures cited by Rest of World.

The failures are not small ones. Byju's, once the world's most valuable education startup at $22 billion, collapsed under a financial crisis and aggressive sales tactics for expensive courses, Rest of World reported. Nigerian startup Edukoya shut down in 2025 over weak profitability and waning investor support. In China, the government's "double reduction" policy in July 2021 hit the K-12 online sector overnight. It pushed Yuanfudao, once valued at $15.5 billion, into AI hardware such as "learning machines". The company is now among the top six players in that market, alongside Zuoyebang.

So the money has not disappeared, it has moved. Lovable sits on the side of the line where investors are still paying up, with a valuation that roughly tripled in five months on the strength of $200 million in ARR. Whether that multiple holds is a different question, and one the round itself does not answer.